"Since the profits that companies can earn are finite, the price that investors should be willing to pay for stocks must also be finite."
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The Intelligent Investor: The Definitive Book on Value Investing by Benjamin Graham is a classic text on value investing and prudent financial management.
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Equity markets are the meeting point for buyers and sellers of stocks. The securities traded in the equity market can either be public stocks, which are those listed on the stock exchange, or privately traded stocks.
When companies are born they are private companies, and after a certain t...
In the equity market, investors bid for stocks by offering a certain price, and sellers ask for a specific price. When these two prices match, a sale occurs. Often, there are many investors bidding on the same stock. When this occurs, the first investor to place the bid is the first to get the st...
Because these business economics working in their favor, there was zero chance of them ever going into bankruptcy.
The lower stock stock price also meant a greater upside potential for gain.
Warren realized t...
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